 "Italy planning $1.6 billion deal with SpaceX's telecoms security services")
Italy is moving towards a landmark 1.5 billion euros (US$1.6 billion) deal with Elon Musk’s SpaceX to provide secure telecommunications services for its government, marking what could become Europe’s largest such project.
Discussions, while not finalised, have gained momentum after a meeting between Italian Prime Minister Giorgia Meloni and US President-elect Donald Trump in Florida. The deal has already received approval from Italy’s Intelligence Services and Defence Ministry, signalling its strategic importance.
A comprehensive plan for secure communication
The proposed five-year agreement aims to equip the Italian government with top-level encryption for telephone and internet services, alongside additional communication capabilities for its military in the Mediterranean region. The plan also includes the roll-out of direct-to-cell satellite services for emergencies like natural disasters or terror attacks.
Negotiations began in mid-2023 but faced delays due to concerns from some Italian officials about potential impacts on local telecom providers. Despite this, the project reflects Italy’s growing interest in leveraging cutting-edge satellite technology for national security and emergency preparedness.
Starlink’s global push and strategic edge
This potential deal comes as SpaceX’s Starlink satellite internet service continues its rapid global expansion. In 2025 alone, Starlink added over 20 countries, from Ghana to Argentina, bringing its service to more than 100 nations and territories with a user base exceeding four million. SpaceX’s mix of technological innovation and Musk’s increasing political influence has allowed it to outpace traditional telecom providers and competitors like Amazon and China-backed initiatives.
Starlink’s services range from residential internet to applications for maritime, aviation, and defence sectors. For Italy, its military and government applications, particularly the Starshield platform designed for secure uses, are a significant draw.
A competitive landscape for Italian telecoms
Italy’s telecom market, one of the most competitive in the world, is undergoing rapid changes. Local carriers have faced shrinking profits, leading to industry consolidation and asset sales. In 2024, Telecom Italia sold its landline network to US private equity firm KKR & Co for €22 billion, a deal strongly supported by Meloni’s government to reduce national debt.
While Italy considers telecommunications a strategic asset and holds stakes in major carriers like FiberCop and Open Fiber, the integration of SpaceX services poses challenges. Starlink’s rapid roll-out in Italy has already faced pushback, with claims of obstruction from Telecom Italia.
The government has also explored alternatives, such as the EU’s IRIS² Satellite Constellation and building its own satellite network, but both options carry significantly higher costs, estimated at over €10 billion. If finalised, the deal with SpaceX would place Italy at the forefront of Europe’s secure satellite communication efforts, solidifying Starlink’s foothold in the region.
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